Federal Reserve Chairman Raises Concerns about Unlicensed Blockchain

03/08/2023 17:01 • Digital Disruptors • 96 views

According to reports, Federal Reserve Chairman Powell said that he was really worried about the unlicensed blockchain. This is not conducive to maintaining safety and soundness. For the United States, it is important to have a legal framework around digital activities. Under proper supervision, stable currency has a place. That is a matter of Congress, not the responsibility of the Federal Reserve.

Powell: Under proper supervision, stable currency has a place

Analysis based on this information:

Recently, the Chairman of the Federal Reserve, Jerome Powell, expressed his concerns about the unlicensed blockchain. Blockchain technology, which is the foundation of cryptocurrencies, has been gaining popularity as a decentralized platform for secure financial transactions. However, Powell believes that the lack of regulation around blockchain poses a threat to safety and soundness, which is of prime importance to the Federal Reserve.

According to Powell, it is crucial for the United States to have a legal framework around digital activities. As with any financial system, there needs to be legal oversight to ensure that the system is fair and transparent for all participants. Without proper legal and regulatory oversight, there is a risk of fraud, money laundering, and other illegal activities. This is why Powell believes that Congress should take responsibility for establishing a legal framework around digital activities rather than the Federal Reserve.

Powell acknowledges that under proper supervision, stable currency, which is a type of cryptocurrency that is designed to maintain a stable value, has a place. However, this can only be achieved through a legal framework that provides the necessary regulatory oversight. The idea of stable currency is that it can be used as a means of exchange and store of value without the volatility of other cryptocurrencies. However, without proper regulation, it can be challenging to maintain the stability of the currency, and thus, it can lead to financial instability or loss of trust in the currency.

In conclusion, Powell’s concerns about the unlicensed blockchain highlight the need for regulation and legal oversight around digital activities, especially in the context of cryptocurrencies. While he acknowledges that stable currencies can play a role in the financial system, it can only be done within the bounds of regulatory oversight. It is now up to Congress to establish a legal framework that can ensure safety and soundness for the financial system in the digital age.

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Federal Reserve Chairman Raises Concerns about Unlicensed Blockchain

Powell: Under proper supervision, stable currency has a place

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